Dow Jones Industrial Average Facing Resistance Around $31,600 Price Area – What Next?


Dow Jones has become volatile after hitting a record high of $31,600 price area. Dow Jones Industrial Average is facing resistance around $31,600 price area. What is next? Bears to regain momentum in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s DJI Technical Analysis. 

February 22, 2021, | AtoZ MarketsDow Jones Industrial Average is currently trading around $31,500 price area and trying to push downside. After breaking over the $31,200 to $31,250 support level, the bulls pushed the price upward, but failed to sustain the bullish pressure above $31,500 to $31,600 key area. As per the current scenario, DJI may retrace towards the dynamic level on the daily chart in the coming days.

In addition, U.S. stock’s performance was mixed after the end of Friday. The greatest performers on Friday on the Dow Jones Industrial Average were Caterpillar Inc (NYSE: CAT). It has climbed by 5.41% or 10.82 points to exchange at 210.75 at the end. On the contrary, the most exceedingly awful performers on Friday were Visa Inc Class A (NYSE:V). It has declined by 2.14% or 4.47 points to exchange at 204.88 at the end.

Dow Jones Industrial Average Facing Resistance as the U.S. Stock Mixed at Close Last Week

Dow Jones is currently residing near $31,500 price area and trying to decline. However, after an extended period of bullish momentum, the price requires a downside retracement.

Dow Jones Industrial Average Facing Resistance

Image: DJI 4 Hour Chart

According to the 4-hour chart, Dow Jones Industrial Average is facing resistance and currently trading around $31,500 price area. As per the current price action, if the price can have an impulsive bearish candle close below $31,600 to $31,500 key resistance level, the bears may regain momentum and decline towards $31,250 to $31,200 support area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upside. Also, the MACD lines are currently residing over the 0.00 level and had a bearish crossover. It indicates that the bears may regain momentum for a while in the process.

DJI May Sustain the Bullish Trend

According to the daily chart, Dow Jones Industrial Average is facing resistance, but the overall bias is still bullish. As per the current price action, if the price can have a daily bearish candle close below $31,600 to $31,500 price area, DJI may retrace towards $31,250 to $31,200 support area in the process. So, if the price retraces towards $31,250 to $31,200 support area and bounced upward with an impulsive bullish candle, the bulls may recover higher towards $31,500 to $31,600 area as a first target. The second target will be $31,900 to $32,000 price area. Alternatively, if the price pushes down and breaks below $31,250 to $31,200 price area, the bears may sustain the bearish pressure towards $30,500 to $30,400 price area in the days ahead.

Dow Jones Industrial Average Facing Resistance

Image: DJI Daily Chart

Moreover, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may act as a strong support to push the price upward. Besides, the Bollinger Bands’ middle band may work as a confluence of the dynamic level in the process.

To conclude, as long as the price residing over $31,250 to $31,200 support level, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days. 

 

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